A new report from eMarketer is predicting strong growth in the digital ad market for the US. We can expect to see 15.9% growth throughout this year, which will bring the total ad spend to $83 billion. Most of that growth will be generated by the major ad network such as Facebook and Google.
Facebook will be dominating the growth this year, with a 32.1% growth rate, which will bring their total percentage of the market to 39.1%. Google will be growing by 14.8%, with their search ads increasing by 16.1%, which will push them even further ahead in the search field that they already dominate. In 2016 Google brought in 75.8% of the revenue for search ads, and in 2017 that is expected to jump to 77.8%.
Twitter is expected to drop by 4.7%, bringing their total control over the overall ad market to just 3.1%. The good news for Twitter, however, is that their predictions for 2018 and 2019 are actually positive at .6% and 1.1% growth respectively.
Twitter has now racked up losses of almost $2.8bn since it floated on the stock market three years ago – at $26 a share – and the latest figures deal a blow to the company’s plan to turn a profit by the end of 2017.
One figure that will give cause for concern among investors is a fall in advertising revenue in the fourth quarter, down to $638m from $641m in the same period of last year. This was largely because of a slump in revenues in the US, which wiped out gains in Twitter’s international markets.
Two other companies are making some inroads in this area as well. Snapchat, which won’t surprise anyone, can expect a growth rate of 157.8%, bringing them to a 1.8% control of the market. Amazon, which isn’t known for their advertising system, should get a 32% growth rate, bringing them to 2.6% control. Still, their stock has been falling fast.Snap’s stock has mostly fallen since the company went public at $24.48 on March 2, with shares hitting an all-time low of about $20.50 on Tuesday.
You can see the full breakdown from this report in the image below:
